March 2, 2009 / 6:27 AM / 10 years ago

CORRECTED - CORRECTED-Micron makes offer to Taiwan's ailing DRAM - report

(Corrects Feb 28 story in paragraph 2 to make clear $2 billion refers to the capital of holding company and not the amount that Micron will bring in)

TAIPEI, Feb 28 (Reuters) - U.S. memory chipmaker Micron MU.N has offered funds and unconditional technology transfers for Taiwan’s struggling DRAM sector, the island’s Economic Daily News said on Saturday, citing a company executive.

In a bid to lead a consolidation of Taiwan’s DRAM sector, Micron executive Michael Sadler said on Friday that his firm could offer it “the most preferential conditions”, for a holding company, which will need a capital of more than $2 billion, the paper reported.

Memory chipmakers in Taiwan are battling their worst-ever downturn as they face a supply glut and faltering consumer demand for electronic gadgets in the global economic downturn.

Many makers of DRAM, or dynamic random access have posted losses in consecutive quarters.

Taiwan makes nearly a quarter of all of the world’s DRAM memory chips, which are found in personal computers and other electronic gadgets. The chipmakers’ health serves as an indication of the strength of global technology demand.

The country’s three biggest DRAM makers, Powerchip 5346.TWO, Nanya Technology (2408.TW) and ProMOS 5387.TWO, are working with the government as it considers various restructuring plans that could see them teaming up with global chip giants. (For a related story, click [ID:nTP120576].

Micron and Japan’s Elpida 6665.T have been brought into the picture, with local media reporting that Elpida was likely to lead any effort to consolidate the Taiwan sector.

Sadler is the executive vice president of Inotera Memories Inc. 3474.TW, a DRAM joint venture between Micron and Nanya.

Taiwan’s economics ministry was unavailable for comment on Saturday but Chen Chao-yih, director general of Taiwan’s Industrial Development Bureau, said he would welcome such a move by Micron. (Reporting by Ralph Jennings; Editing by Jan Dahinten)

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